Leadership Changes at Porsche
Significant changes are taking place at Porsche: CEO Oliver Blume is leaving his position after ten years of leadership. His successor will be former McLaren executive Michael Leiters. Blume will continue to lead Volkswagen, where he also holds the position of CEO.
Reasons for Resignation
Blume led Porsche for ten years and three years ago additionally took over the leadership of the Volkswagen Group. However, shareholders expressed concern, as the dual role of leading both companies, in their opinion, hindered effective management. Volkswagen shares fell by almost 30% during his tenure, and Porsche’s share price halved since its IPO in 2022. Critical moments were repeated profit warnings, weak sales in China, and a slow transition to electric vehicles.
Employee Reaction
Employees also expressed their dissatisfaction. Volkswagen’s Works Council Chairwoman Daniela Cavallo stated:
“The CEO cannot be a part-time leader in Wolfsburg and spend the rest of his time at Porsche. This situation must end.”
Company’s Official Position
An official statement from Porsche noted:
“Dr. Oliver Blume as CEO of Porsche AG took on great responsibility during difficult times and successfully led the company. The Supervisory Board of Porsche AG expresses its gratitude to Dr. Blume for his strong commitment. We look forward to continuing close and trusting cooperation with him as CEO of the Volkswagen Group.”
Future under Leiters’ Leadership
Michael Leiters joined McLaren in 2022, and previously worked at Ferrari on the development of the SF90 and 296 hybrid models. He is German by origin and is well acquainted with Porsche, having worked at the company from 2000 to 2013, participating in the creation of the Cayenne Hybrid.
New Porsche Strategies
Leiters could contribute to Porsche’s return to its traditional values. Thanks to his engineering experience, focus on luxury and sports cars, and deep understanding of the brand, he could help focus on what Porsche does best. The company recently revised its electrification strategy, increasing investments in new internal combustion engine cars and extending the life cycles of existing models.
Future Plans
The planned K1 off-roader, which was supposed to be electric, will now receive internal combustion engines and hybrid powertrains. Furthermore, Porsche has begun work on a replacement for the ICE Macan SUV, which will be sold alongside the electric version. Also, the new electric 718 Boxster and Cayman models will be modified to offer internal combustion engines to the wealthiest clients.
Blume’s departure is unlikely to change these plans, but it shows investors that Porsche is actively working to improve the situation. This is a kind of signal of readiness for change in response to market challenges, especially in the context of global competition and growing demands for sustainability. The transition to a more balanced approach between traditional and electric technologies could be key to restoring trust and the company’s financial performance.